To maximize your retirement savings, consider supplemental contributions. You decide the amount you want to contribute within IRS limits. See table below. The total dollar amount of your own contribution (your 5% matched contributions, both pre-tax and Roth, plus your supplemental contributions) to the USC Retirement Savings Program (but not the university’s contribution) counts toward your annual IRS limit. Vesting of your contributions is immediate.
|Type of limit||2018|
|403b under age 50||$18,500|
|403b over age 50||$24,500|
|Compensation limit (employer’s matched retirement contributions are limited to matches made on this amount of salary)||$275,000|
Your contributions are invested by the same companies selected by the university to manage the matched investment of the USC Retirement Savings Program. Each company offers a wide variety of investment options.
You may elect to make supplemental retirement contributions as soon as you become a university employee. You will choose your investments and complete enrollment and beneficiary information for the investment provider(s) you select. Contributions to the supplemental plan do not count toward the USC Retirement Savings Plan (basic matched plan)—they are two separate contributions. However, the two contributions combined cannot exceed the annual IRS voluntary limit.
These options are always available; you do not have to wait for open enrollment. You can make changes to the amount of your contribution (including stopping contributions) at any time. You can change your investment allocation at any time. You also can transfer monies between companies and between investment funds at any time subject to limitations on the frequency and amount of transfers set by the investment and insurance companies.
If you have a retirement account from a previous employer, you may be eligible to rollover those funds into the supplemental retirement plan if you would like to consolidate your accounts. Contact your previous provider and Benefits for further information. Note that funds transferred will be subject to all of USC’s plan rules, including rules on accessing balances.
More information about supplemental contributions is available from Benefits. Extensive information is also available from each of the participating companies online.
Fidelity Investments | www.netbenefits.com/usc.rsp
TIAA | www.tiaa.org/usc
Vanguard | www.vanguard.com/usc
How to calculate your maximum supplemental retirement contribution for 2018
Since the USC plan requires you make a 5% contribution from each paycheck to obtain the university’s 5% match, you do not want to over-contribute to the supplemental category and not leave enough “room” for the university’s 5% basic match.
Step 1 – Estimate your total retirement eligible compensation this year and multiply by 5% to determine the total amount of basic matched contribution for 2018.
Step 2 – Subtract the basic matched contribution from the IRS limit: $18,500, or $24,500 for those over age 50, to determine the amount available for supplemental retirement. Reduce from the available amount any supplemental retirement already contributed. You can find YTD information on your payslip.
Step 3 – Divide the amount available for supplemental by the number of pay periods remaining in year to determine the optimal pay period contribution.
Remember, when you make a pre-tax election, it will take effect in the NEXT pay period, not the current pay period.
Participant Fee Disclosure Notice
The Participant Fee Disclosure Notice, required by the Department of Labor, was developed to help ensure that participants (and also employees who are not participating or not yet eligible to participate) receive sufficient information regarding their plan and the investment options available to them.
USC has directed TIAA, one of the vendors available under the USC Retirement Savings Program, to collect this data from all of the vendors and present their information in a combined notice. This publication contains information that can help you make informed decisions about any account you may have in the retirement plan and includes:
- Fees and expenses related to plan accounts
- Participant rights under the plan
- Rules related to providing investment direction
- Details about the plan’s investment options, including investment-related fees and restrictions
For most participants, this notice will be provided annually. The most recent disclosures:
If you have any questions regarding this notice, please contact the USC Retirement Administration Office at email@example.com.